Posted on

Purpose Built Office Leasing Tactics and Strategies for Agents

city buildings on skyline

The client or the owner of a commercial office building wants to know that you have a definite plan and a ‘toolbox’ of strategies that you can apply to their leasing challenge.  The ‘generic’ approach to office leasing doesn’t work anymore.  You are the leasing ‘strategist’.

Be more specific with your leasing engagements with properties and clients.  Put the client’s property leasing requirement firmly into the property market in your location and build your leasing stories and tactics around that.

blue box on white background
Leasing Course for Brokers and Agents

Asking the Right Leasing Questions

There is no ‘one fits all’ approach to finding tenants and filling any vacancies in office leasing.  Be specific when you try to help your landlord clients with their leasing challenge; put some ‘purpose’ into your leasing plan and provide ‘clear strategies’.   Here are some ways you can do that:

  1. Know the major buildings locally – As part of any leasing project, be aware of the other buildings in the location that could have an impact on your client’s property and the known or upcoming vacancies.  There will need to be a ‘point of difference’ to help your property with its leasing requirements stand out as relevant and valuable to tenants and local businesses.  How can you do that?
  2. Target tenants and businesses – Certain tenant types will match your vacancies in your listed property.  The marketing of the vacancies then becomes more direct and specific.  Build a plan of specific marketing to reach out into the best tenants and businesses that you think would be good candidates to occupy your listed property.
  3. Risk reduction is important in what you do – This means that you can and should be part of the property improvement plan by providing better tenants and creating quality leases.  How can you do that? The answer will help you engage with your clients with their investment requirements and strategies.
  4. Vacancy reduction is normally achieved through tenant attraction and retention – Every exclusive leasing appointment should have a tenant attraction and retention plan.  That will involve some specific rents and lease offerings with existing tenants.  Each year those plans can be modified as part of the
  5. Incentives and benchmark rentals should be set – The property market will change, and with that change will come variations with supply and demand impacting your lease listings.  The enquiry that you want or get with your property listing will be reflected from the rents you are asking for, and incentives that you are providing.  Understand what other tenants are being offered currently in the local property market, and then package your property and its vacancies to have some advantage in rental and or incentive offerings.  Make your property the ‘best value’ in office leasing locally.  It doesn’t matter too much where you start with rentals, but it does matter where things finish.  Your rent review strategies will be a useful way of improving things from the starting rent.
  6. What are the improvements and fit-outs possiblities to apply? – Prepare your vacancies for leasing by considering the improvements, the services and amenities, and the fitout configurations.  The size of the floor plates will also have an impact on fitout design.

These office leasing strategies will help you build some purpose and momentum into your professional leasing services for your clients.  Be comprehensive in how you build a lease strategy for your clients and their property vacancies.  Be all-inclusive in how you look at attracting potential tenants to the asset and its vacancies.  These are the qualities of a professional leasing agent in office property today.

Posted on

All Important Questions to Ask Office Leasing Tenants Today

office cubicles
Vacant office space requires real strategy

 

As a leasing agent you are frequently looking to lease vacant premises in an office building and CBD location.  Many enquiries and calls today will or should come to you from the marketing campaigns you create; the rates of enquiry for every high quality leasing opportunity should be tracked.

Having trouble with tenants?  Here are some comments and ideas below that I sent to our ‘Commercial Snapshot’ Online Community this week.

What’s Important with Tenants?

The important issues in capturing enquiry are in qualifying the enquiry, in understanding what tenants are looking for and when they require it.  Successful leasing agents will have a large database of well qualified tenants and business owners that they can approach when the right property comes to market.

That being  said, I have heard many leasing agents complain over the years about the problems of chasing after the specific leasing requirements of tenants only to find that the tenant has found something or will not move on an ideal property or location.  The fact of the matter is that you should only go so far in helping tenants because they are not fully committed to you; they can waste a lot of your time asking about certain properties, and at the same time be talking with many other agents.  Set the limits on just how much time you should spend on any tenant lease enquiry.

The message here is if you control the quality buildings to lease, the enquiries will very likely come to you in abundance.  Good buildings for lease will drive better rates of property enquiry.  That then makes it a lot easier for you to fill your database with the right tenants and business owners.

The tenant qualification process is quite special and direct.  Here are some of the main facts and questions to explore in finding out what the tenant needs, and to identify how genuine they are in looking for a new property to occupy:

  1. Decision Maker – Understand who you are talking to and their role in looking for a new property to lease. With business type tenants it is common to see some person in middle management tasked with the process of finding properties to ‘short list’.  Ideally you want to be talking to the key person in the property decision process.
  2. Essential location – Some businesses must be located in particular precincts and zones of a city. There will be reasons for those choices and points of focus.  I like to ask about ‘primary’ and ‘secondary’ locations so I can create a short list of properties in each case.
  3. Rental budget – The rent for a property is not just a single amount of money; added to that figure will be the outgoings and sundry charges geared to occupancy. The type of lease will dictate how the rents and outgoings will be charged and paid.
  4. Improvements – The office fitout will have desirable design factors to suit the way the tenant undertakes their business, interacts with staff, and serves customers. Car parking will also have a factor of priority in final property choice.  How many car parks do they need?
  5. Timing – Understand when they are looking to make the move. You can then integrate the issues of fitout construction, and the moving of the business.

Given all of these things I like to ask the tenant directly about what other properties they have already seen; it is likely that they have approached a few leasing agents already and on that basis I don’t want to waste my time in quoting things that will not suit or they have already seen.   Protect your time and focus on key questions to get directly to the tenants leasing requirements.